The National Association of Health Underwriters (NAHU) has suggested language that its members might use. “We are not politicians or media folks so we do not work in sound bites. We are benefit professionals and we know you expect us to provide accurate answers that you can rely on. This is illustrated by the President’s miscue on coverage being immediately available for children under 19 regardless of their health situation. While insurers have agreed to provide coverage as he described it, the bill did not require the companies to do so. Such are the results when you work in a hurry and refuse to listen to people whose business is health insurance. Implementation of the current bill will be a very fluid situation for a number of weeks in some cases and, in others, months or years.”

NAHU concludes their suggested language by asking for patience as this process unfolds. The American public doesn’t have a lot of patience left and poll numbers indicate growing dissatisfaction with the letter and the spirit of the law as well as the overselling that took place in the final weeks leading up to the vote. Maybe this is less a case of understanding than a case of buyers’ remorse. In that event, the best answer is: Legislate in haste, repent in leisure.

Rodney Gilbert, CLTC, is a Registered Financial Representative and President of United Life Financial LLC. Rodney has been assisting his clients achieve their financial objectives since 2007. He holds Series 6 and Series 63 licenses and the Certification in Long Term Care (CLTC) Designation. Rodney is also an avid speaker to those who want to learn more about tax planning with IRAs. For additional information, visit http://www.unitedlifefinancial.net/


Remember, this blog is for information only and is not an offer to sell or invest in securities. Please refer to all appropriate prospectuses prior to any investment. Investments can, and do, lose money.

Don’t get me wrong. Madoff himself is a despicable person. Over a twenty-year period, he created the world’s biggest Ponzi scheme worth an estimated $65 billion. Hundreds of individuals, retirees, and charities were hurt or destroyed by Madoff’s deception.

He deserved to get the maximum penalty (150 years).

Nevertheless, let's look at all the positive side effects of the Madoff scandal. Here are the three most valuable lessons we can learn from the biggest crime on Wall Street in a hundred years.

Investigate before you invest

Millions have now learned a powerful investing lesson. Don’t blindly turn your hard-earned funds over to a money manager just because he promises great returns year in and year out. Be a skeptic about money managers who insist they can beat the market all the time. Make sure the manager has an independent and reliable auditor. Check the monthly statements to make sure there’s no funny business going on.

“Due diligence” finally means something again when it comes to investing.

A corollary is: Manage your own money as much as possible. Use a discount broker and select your own stocks to buy and sell. Get educated by reading books, attending seminars, subscribing to independent newsletters, and asking a lot of questions.

Take responsibility for your actions; don’t blame others for your mistakes.

If you are still uncomfortable managing your own funds, consider investing in publicly traded mutual funds with good track records that you can value daily in the newspaper or online.

Diversify, Diversify, Diversify

I really have little sympathy with individuals or charities that were wiped out by Madoff’s shenanigans. Only the greedy or stupid would invest their entire fortune or foundation’s whole endowment in a single investment.

It’s time to return to fundamentals, specifically, the “prudent man” rule that used to carry some weight on Wall Street and the New York media.

Always diversify so that no single investment can destroy your financial independence.

There is a great deal of virtue in the old proverb, “Don’t put all your eggs in one basket.” From time to time, you hear some guru suggest a modern alternative: “Put all your eggs in one basket -and watch that basket!”

In most cases, it’s a recipe for disaster.

Sure, most entrepreneurs have made it big by concentrating in one particular business, and when they get rich, the wise ones always diversify their surplus wealth – stocks, bonds, real estate, gold, and collectibles. To invest all their wealth with one money manager or in one brokerage account, that is pure foolishness.

Don’t depend on the government to protect you

Another investing lesson that many seem to blindly ignore is that you’re on your own.

Government lawyers at the Securities and Exchange Commission (SEC) were hopelessly outwitted by Madoff’s firm. Private financial investigator Harry Markopolos warned the SEC three times about Madoff’s fraudulent activities, but Madoff got a clean bill of health from SEC investigators.

Why?

Because the SEC has a penchant to go after the little guys, such as brokers promoting penny stocks, who are usually willing to settle with a small fine, even when they are innocent. SEC agents are judged primarily by “quantitative metrics” – the number of actions it brings and cases it settles.

Last month The New York Times highlighted the incredible story of a small-time California stockbroker who was investigated by the SEC for promoting a small cap stock.

The broker refused to settle because he knew he had acted ethically within the rules, and didn’t want his good name destroyed with a consent decree. Even though he was repeatedly exonerated by the courts, he was left a bitter 72-year old man with $1 million in debt defending himself. “They chose me instead of Bernie Madoff,” he said, and it cost him dearly. (See the June 27, New York Times cover story, “Chasing Small Fry, SEC Let Madoff Get Away.”

On a broader more philosophical basis, the existence of the SEC creates a false sense of security, giving the illusion that somehow the public is protected by the government from frauds, deception and scandal. Now we know better.

Investors must live by the rule, “Caveat emptor.” Let the buyer beware.

Remember, no one will ever take as much interest in your financial well-being as you do. It’s the reason why you should always know what you are investing in and why.

And it’s also the explanation why I continually recommend that readers do their own research. What’s right for your neighbor, might be completely wrong for you. Check any “hot tip” or stock suggestion out first, do your own research, and ultimately make you own decision on whether a company or security is a buy.

In addition, diversification and asset allocation are key principles behind my approach because they spread your risk while giving you maximum gains. It’s funny how seemingly smart people – like many of Madoff’s investors – forget these simple rules.

These rules could have saved them billions.

A little investment education goes a long way.

Rodney Gilbert, CLTC, is a Registered Financial Representative and President of United Life Financial LLC. Rodney has been assisting his clients achieve their financial objectives since 2007. He holds Series 6 and Series 63 licenses and the Certification in Long Term Care (CLTC) Designation. Rodney is also an avid speaker to those who want to learn more about tax planning with IRAs. For additional information, visit http://www.unitedlifefinancial.net/


Remember, this blog is for information only and is not an offer to sell or invest in securities. Please refer to all appropriate prospectuses prior to any investment. Investments can, and do, lose money.

Looking to hasten your portfolio's recovery? No doubt you are anxious to avoid further foolish mistakes. To that end, be sure to follow these 20 rules of portfolio building:

1. Those who amass impressive portfolios are sometimes good investors. But they are almost always prodigious savers. Socking away a healthy sum every month is the surest way to make your financial accounts grow.

2. Before deciding what to buy, consider when you will sell. Stocks may be your best bet for earning high long-run returns. But if you are within five years of needing your money, you can't afford the risk involved.

3. Your attention will inevitably be drawn to the results for each of your investments. But what really matters is the performance of your entire portfolio.

4. For long-term investors , the big threats are inflation, investment costs and taxes. If your returns aren't high enough to beat back those three threats, you aren't making any money.

5. Your stock-bond mix is almost always an unhappy compromise. You should put enough in stocks to generate the sort of long-run returns you need, but not so much that you become unnerved next time the market tumbles.

6. If you're a long-term investor, you shouldn't have all your money in stocks or all your money in bonds. Stocks and bonds often move in opposite directions, so you can reduce your portfolio's volatility by owning both.
No matter how squeamish you are, don't put less than 20% of your portfolio in stocks. Similarly, no matter how aggressive you are, don't let your bond holdings drop below 10%.

7. Once you decide what percentage of your portfolio you want in stocks, look to rebalance back to this percentage at the end of each year. That will force you to buy stocks in market declines and lighten up when stocks are roaring ahead.

8. In divvying up your portfolio among various stock and bond sectors, an unswerving commitment is much more important than the precise mix. Some experts suggest stashing 10% of a stock portfolio in foreign stocks, while others advocate 40%. But within reason, the exact amount is less important than your willingness to stick with your chosen percentage through thick and thin.

9. Buying risky assets can lower your portfolio's risk level. On their own, gold stocks, high-yield junk bonds and emerging markets are enormously risky. But if you add a sliver of these investments to your portfolio, you can actually reduce your portfolio's overall risk, because these investments may post gains when your core stock and bond holdings are suffering.

10. Whenever a market falls in value, you should become more enthusiastic, not less so. Individual stocks and bonds may lose all value. But it is rare that entire markets disappear. To be sure of capturing a market's performance, buy mutual funds, not individual stocks.

11. Never buy an actively managed stock fund unless you are confident it will outperform competing index funds. With my own portfolio, I find it hard to summon that sort of confidence, which is why I have almost all my money in market-tracking index funds.

12. The quickest way to get poor is to bet everything on one stock. The quickest way to get really poor is to bet everything on your employer's stock. Just ask the laid-off employees of WorldCom (now called MCI), Enron and other extinct corporations, who lost both their paychecks and their nest eggs.  Check the pension funding status of your company as well.  Even companies like Ford almost lost their pensions due to underfunding.

13. When you buy an investment, you never know whether you have yourself a winner. But if you hold down costs, you will definitely improve your results.

Indeed, trying hard to outperform the market is almost always self-defeating. The more you trade, the more you incur in investment costs, thus making it less likely you will beat the market.

14. The biggest investment cost is taxes. To slash your portfolio's tax bill, max out your 401(k), fund your individual retirement account and trade with great reluctance in your taxable account.

I know people who trade at the drop of a dime to make a couple of dollars each day...........Trust me, the short-term trade-off of Uncle Sam's tax bite will delay their retirements tremendously!

15. If you keep costs low and maturities short, you won't go too far wrong with bonds. Short-term bond funds will give you much of the yield of longer-term bond funds, but with a fraction of the price gyrations.
But which funds should you buy? It's tough for a bond manager to overcome high annual expenses, so your top fund-picking criteria should be cost.

16. If you are at a loss for what to buy, consider purchasing either inflation-indexed Treasury bonds or Series I savings bonds. They are probably the closest you will ever get to a risk-free investment. There is no credit risk, because the bonds are government-backed, and there is no long-run inflation risk, because the bonds offer a fixed yield above inflation.

17. Paying down debts is like buying bonds. When you buy bonds, you lend money to others, in return for which you earn interest. By contrast, when you pay down debts, you reduce the amount you owe to other folks and thus reduce the amount of interest you have to pay.

Paying off credit cards and other high-cost debt is one of the smartest investments you can make. Depending on your mortgage's interest rate, it can also make sense to make extra principal payments on your home loan.

18. The biggest gain from homeownership doesn't come from price appreciation. Instead, the big gain comes from the rent or, if you live in your own home, the imputed rent. One implication: You shouldn't expect huge profits if you buy a vacation home and then use it yourself, rather than renting it out.

19. If you want to invest in real estate , I would forget buying actual properties and instead purchase real-estate investment trusts. With REITs, you will get the sort of returns enjoyed by real-estate owners, but without the hassles of being a landlord.

20. For the sake of your sanity and your heirs, keep your portfolio simple. Draw up a list of all your investments. If the list doesn't fit on one page, you own too many investments.

Honorable mention.........

21. Tax Diversify your portfolio if you want to maximize your retirement savings. How? Diversify. Fund accounts that generate both tax-deferred and tax-free income -- and have some assets in your taxable accounts that create most of their return through unrealized capital gains or a rising share price.

Unrealized gains aren't taxed until you sell, and as long as you hold these investments longer than a year, you're taxed at the long-term capital-gains rate, which now maxes out at 15 percent vs. 35 percent for ordinary income and short-term capital gains.

The reduced 15% tax rate on qualified dividends and long term capital gains, previously scheduled to expire in 2008, was extended through 2010 as a result of the Tax Reconciliation Act signed into law by President George W. Bush on May 17, 2006. As a result:

• In 2008, 2009, and 2010, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets.

• After 2010, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket.

• After 2010, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).

• After 2010, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

Keeping money in these three pots -- tax-deferred, tax-free and long-term capital gains -- will give you some maneuvering room when it comes to retirement.

Enjoy.........

Why? The appropriate question may be "Why not?"

If you wonder what to do with the 401(k) or 403(b) you will end up with because you’re leaving your employer, consider all your options so you can make a decision that fits your circumstances. Although 401(k) and 403(b) plans differ in some ways, the information below applies to both.

What are your options?
Leave the money in the current 401(k) if an employer allows that option.
Roll the money over into an IRA.
Transfer it into your new employer’s 401(k).
Take the money and pay any taxes and, perhaps, penalty due.

The option you select depends on a number of factors and how they apply to your situation.

Investment Choices

It takes a variety of investments that perform well and have reasonable expenses to grow your money over time. Any plan should include mutual funds split among equities (stocks) that present value and growth; small, medium, and large capitalization; and domestic and international companies. Bond funds also should be part of the mix, split among corporate and government; short-term, medium-term, and long-term; and corporate bonds of investment grade and high yields.

Check on performance and expenses in your plan’s documents. Then compare that data with the rest of the market via Morningstar. If you’re not satisfied, consider transferring your money into an IRA account with a low-cost brokerage firm like Ameritrade, Schwab, T.D. Waterhouse, or Vanguard. All offer a variety of investment choices.

Need the Money Now?

Your 401(k) and IRA accounts are meant for retirement, but what if you’re in a temporary financial bind or are starting a business and need some cash? Loans from IRAs are not allowed, but loans from 401(k) plans are, provided the plan has a provision for it. If it’s allowed, generally you can borrow up to $50,000 or half of your account balance, whichever i lower; repayment is by equal monthly payments over five years. If you terminate employment, the loan is due immediately. Check your plan documents or with your plan administrator for the specifies, including fees.  If you default on the loan, income taxes are due, as is a 10 percent penalty for an early distribution. The loan interest you pay goes into your account because you are borrowing from yourself. But remember that you will be repaying the loan with after-tax dollars, and those same dollars will be taxed again when you start receiving retirement distributions.

Really Need the Money Now?

401(k) plans may have a hardship feature that allows withdrawal if you have a qualified hardship and you have exhausted other reasonable options. Withdrawals are taxable, and your ability to contribute to the 401 (k) is suspended for six months. Check out your plan documents for the details. IRAs do not have hardship withdrawal features, but you can take an IRA distribution and pay income taxes on that distribution. For both the 401(k) hardship withdrawal and the IRA distribution, if you are under 59.5% you will pay a 10 percent penalty, unless the money is for disability or certain medical expenses. In addition, a distribution from an IRA avoids the 10 percent penalty if it’s used to buy a first home ($10,000 distribution limit), to pay qualified higher-education expenses, or to pay health insurance premiums if you are collecting unemployment insurance.

Periodic Distributions

What if you’re not yet 59.5% and want to start taking distributions? If you terminate employment after reaching 55, your 401(k) may offer the opportunity to take distributions before 59.5%. These distributions are taxable, but the 10 percent penalty does not apply. Check your plan documents.

With an IRA, you generally have to wait until age 59.5% to take distributions without an early withdrawal tax penalty. However, distributions are taxable, but the 10 percent penalty does not apply. Check your plan documents.

With an IRA, you generally have to wait until age 59.5 to take distributions without an early withdrawal tax panalty. However, distributions can start earlier of they are part of a series of substantially equal periodic payments. These payments must continue for at least five years or until you reach 59.5, whichever happens later. Distributions are also penalty-free if they occur after death or disability.

Distribution to Beneficiaries

What happens to your 401(k) or IRA when you die?

After death, if your spouse is your 401 (k) beneficiary, they have several options, including continuing the 401(k) plan or rolling it over into their IRA. A nonspouse 401(k) beneficiary generally has to take a distribution for the entire balance (usually taxable) within a fixed time, usually five years. Again, details vary by plan, so check your 401 (k) plan documents.

With an IRA, your spousal beneficiary has similar options to continue the tax-deferred status. A nonspouse IRA beneficiary can stretch distributions over their lifetime. This benefit can be significant if your beneficiary is a child, as it teduces the immediate tax consequences and gives te money more time to grow.

Protect Your assets

Federal law protects 401(k) plans from creditiors. IRA are governed by state law and may not be protected the same way. Check your state.

Rollovers and transfers

If you rollover the 401 (k)  to an IRA, don’t have the check made out in your name - 20 percent will be taken out for federal income taxes. A direct transfer can help avoid this. Open your IRA first, then have the money transferred directly from your current 401 (k) to your new IRA. If your current 401 (k) cannot do this, then accept a check made out to the IRA, which avoids the 20 percent withholding, and then make sure it gets deposited into your IRA so it can begin working for you as soon as possible.

• Expand opportunities for automatic enrollment in 401(k) and other retirement savings plans,
• Make it easier for more than 100 million families to save a portion or all of their tax refunds,
• Enable workers to convert their unused vacation or other similar leave into additional retirement savings, and
• Help workers and their employers better understand the available options for tax-favored retirement saving through clear, easy-to-understand language.

Together, these steps will expand the range of choices for workers who want to save and will make saving easier for millions of Americans.

Attached is a fact sheet that outlines the new initiatives for retirement savings.

The full audio of the address is HERE. The video can be viewed online at www.whitehouse.gov.

Here are the actual remarks of President Barack Obama during his weekly address Saturday, September 5, 2009

"As we spend time with family and friends this Labor Day weekend, many of us will also be thinking about the state of working America. Yesterday, we received a report showing that job losses have slowed dramatically compared to just a few months ago. Earlier in the week, we learned that the manufacturing sector has posted its first gains in eighteen months, and that many of the banks that borrowed money at the height of the financial crisis are now returning it to taxpayers with interest.

These are only the most recent signs that the economy is turning around, though these signs are little comfort to those who’ve experienced the pain of losing a job in the previous month, or in the previous two years of this recession. That’s why it is so important that we remain focused on speeding our economic recovery. Throughout America today, tens of thousands of recovery projects are underway, repairing our nation’s roads, bridges, ports and waterways; renovating schools; and developing renewable energy. We’re putting Americans back to work doing to the work America needs done – and mostly in private sector jobs.

But even as we take aggressive steps to put people back to work, it is also important that we keep faith with men and women looking back on a lifetime of labor; hard-working Americans who deserve to know that their efforts have resulted in a secure future, including a secure retirement. For this recession has not only led to the loss of jobs, but also the loss of savings. The drop in home values, for example, has also meant a drop in the value of the largest single investment most families have. And the decline in the financial markets has led to a decline in the value of 401(k)s and other sources of savings and retirement security. As a result, over the past two years, the American people have lost about $2 trillion in retirement savings.

This carries a painful toll. I’ve heard from so many who’ve had to put off retirement, or come out of retirement, to make ends meet. I’ve heard from seniors who worked hard their whole lives but now, in their golden years, are unsure of where to turn to pay the bills, afford the prescriptions, or keep the home in which they raised a family. And having too little in savings not only leaves people financially ill-prepared for retirement, but also for whatever challenges life brings. It places in jeopardy so many dreams, from owning a home to attending college.

The fact is, even before this recession hit, the savings rate was essentially zero, while borrowing had risen and credit card debt had increased. Many were simply struggling to stay afloat as incomes were stagnant – or falling – and jobs were scarce; that’s important to remember. But there were also those who spent beyond their means. And more broadly, tens of millions of families have been, for a variety of reasons, unable to put away enough money for a secure retirement. Half of America’s workforce doesn’t have access to a retirement plan at work. And fewer than 10 percent of those without workplace retirement plans have one of their own.

We cannot continue on this course. And we certainly cannot go back to an economy based on inflated profits and maxed-out credit cards; the cycles of speculative booms and painful busts; a system that put the interests of the short-term ahead of the needs of long-term. We have to revive this economy and rebuild it stronger than before. And making sure that folks have the opportunity and incentive to save – for a home or college, for retirement or a rainy day – is essential to that effort. If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement. That is why we are announcing several common-sense changes that will help families put away money for the future.

First, we’re going to make it easier for small businesses to do what large businesses do: allow workers to automatically enroll in a 401(k) or an individual retirement account. We know that automatic enrollment has made a big difference in participation rates by making it simpler for workers to save – and that’s why we’re going to expand it to more people.

Second, we’ll make it easier for people to save their federal tax refunds, which 100 million families receive. Today, if you have a retirement account, you can have your refund deposited directly into your account. With this change, we’ll make it easier for those without retirement plans to save their refunds as well. You’ll be able to check a box on your tax return to receive your refund as a savings bond.

Third, we’ll make it possible for employees to put payments for unused vacation and sick days into their retirement plan if they wish. Right now, most workers don’t have that option.

And fourth, the IRS and the Treasury Department are creating a plain-English, easy-to-follow guide, as well as a website, to help folks navigate what are often very complicated waters, especially for workers changing jobs who often are unsure how best to continue saving for retirement. Because the rules ought to be written to encourage people to save – instead of discouraging them.

We’ll also build on these steps by working with Congress. As part of my budget, I’ve proposed ensuring that nearly every American has access to a retirement savings account through his or her job. This plan would make it possible for workers to automatically enroll in IRAs through payroll contributions. And the budget simplifies and expands a tax credit for millions of families, matching half of a family’s savings up to $1,000 per year and depositing the tax credit directly into a retirement account.

This is a difficult time for our country. But I am confident that we can meet the challenges we face and leave behind something better; that we are ready to take responsibility for our future once again – as individuals and as a nation. I hope that all of you have the chance to enjoy this Labor Day weekend with family and friends. But my larger hope and expectation is that next Labor Day, the economic storms we’re weathering now will have given way to brighter and more prosperous times."

My take:

Personal savings in this country have forced the governmnt into further debt and the systems in place cannot handle the burden.  After we help "The People" increase their opportunities to save for retirement we will be off of the hook to help them if they don't save enough.....................  That's my take.  What do you think?

Wow! 

Luckily, she had a policy on him to help the family, financially, deal with the tragedy.The death of a loved one is the worst tragedy a family can endure. But if that loved one passed away without life insurance, the financial chaos that follows can make the grieving process seem intolerable.

For most Americans, the most valuable investment they'll make is their home. But each year, thousands of homeowners pass away before their mortgage is paid off -- many of them without life insurance. Sadly, without a life insurance benefit, many grieving families can't afford the mortgage payments.

That's why homeowners may want to look at the flexibility of using term life insurance to protect their families and their mortgages. 

In addition to being the most affordable form of coverage, term life insurance allows consumers the freedom to mold a policy to fit their personal needs. Consumers select their own coverage amount, term length and more, making it term life insurance ideal for homeowners who need a 10, 20 or 30-year life insurance policy to protect their mortgage.

By purchasing a term life insurance policy that matches the length of their mortgage, homeowners virtually guarantee their family's financial security. If the homeowner passes away before the home is paid off, their life insurance benefit gives the family the flexibility to pay off the mortgage or any other necessary items that may be on the horizon.  Why just pay the mortgage company and leave the family, whom you love, high and dry?

For example, if a homeowner has 20 years left on his mortgage, he could purchase a 20-year term life insurance policy to protect his mortgage. If he passes away before the home is paid off, the life insurance benefit is used to pay off the mortgage.

Term life insurance is an excellent way to protect a mortgage. The premiums are reasonable and policyholders choose the level of coverage they purchase not just the amount that will cover the home. 

Unlike whole life insurance, term life insurance focuses on providing low-cost coverage during the time you need it most -- when you're still paying off your home. After you retire, your home will be paid off and your life insurance needs will probably decrease, so why stick yourself with a pricey whole life insurance policy?

Another reason to consider term life insurance is affordability. A healthy 40-year-old male can expect to pay roughly $30 per month* for a $500,000, 20-year level term life insurance policy. The average rate for a female seeking the same coverage is about $25 per month.

*Insurance Information Institute

 Protect your family and secure their future by getting free term life insurance quotes with Atlanta Insurance Advisors.

What am I talking about?  Some call it the stretch IRA. Others, the multi-generational account. And still others refer to them as eternal individual retirement accounts. Call it what you want, but this wildly popular retirement tool has fast become the darling of estate planners. And, if used properly, it can save your loved ones a small fortune on the assets you leave behind. "This is a hot topic now since everyone wants to stretch their tax deferral," said Robert Tull Jr., a certified financial planner in Chesapeake, Va. "It's really a fascinating idea today because there is so much wealth out there being transferred to beneficiaries. People are always looking for ways to defer taxes on that." 

First and foremost, your financial plan should be a perfect fit for your life as it is today, easily and quickly adaptable to the constant changes life throws at you, and always focused on achieving your longer-term life goals. That’s a big — and important — deal.

So, the first question you must ask yourself is, do I need a financial plan? The simple answer is yes — if you have an income, a family (or the hopes of one), dreams of a comfortable retirement, and any of the dozens of other financially-rooted reasons that are unique to you.

The next question is, what are the elements of a sound financial plan? There are two answers to that question: the general and the specific.

In general, every financial plan should include: investment planning, cash flow planning, education planning, estate planning, insurance planning, retirement planning, and income tax planning.

The key to a successful financial plan is making sure that each of those elements is made specific to you and your needs — and to do that, a competent professional adviser will take you through this six-step planning process:

1. Goal setting — to determine and prioritize your goals and concerns.

2. Data gathering — assembling the relevant financial information to understand your current financial situation.

3. Financial analysis — using your current and projected financial situation to identify and answer questions like: How much tax must I pay? How can my taxes be reduced? Will I have enough income to cover my expenses during retirement? How can I better meet my income needs? How can I protect my family and income if I should become disabled or die unexpectedly?

4. Plan formulation and recommendations — discussing, reviewing and deciding on various alternatives and solutions for achieving your financial goals and improving your overall financial life.

5. Plan implementation — providing you with a written report summarizing the steps you need to take to make your plan work.

6. Monitoring and plan review — financial planning is not a one-time event. You should review your plan at least annually or when major life events occur.

Comprehensive financial planning is complex and necessary. To be sure you get exactly the right one for your situation, it’s a good idea to put a professional adviser on your financial team — an adviser with the qualifications, tools and track record you can count on to develop a personalized financial plan that will do the job for you — today and tomorrow.

Yes! The following is a list of who can benefit from the 2009 Stimulus Package.

Workers

Unemployed

First-Time Homebuyers

College Students and Their Families

New Car Buyers

Families

Retirees, Veterans and Disabled

Current Homeowners

Middle-Income Taxpayers

Small Business

If you are a small business owner I suggest you go to the the following link from the Turbo Tax website to view an extensive list of the Top Tax Incentives for Small Business Owners. http://www.2009stimulusforbusiness.com/?tab2.

For many of us, there are a number of end of year tax savings tips you can utilize. One year end tax planning strategy you may want to consider is what is known as end of year tax- loss harvesting for your Non-IRA investment holdings. If you have an investment holding ie. stock or mutual fund that is worth less than what you paid for it, you can sell the position, recognize a loss then either buy into something else( I suggest very similar in nature to stay as close to original holding as possible ) or wait 31 days to buy back into the same position. This will allow you to offset any current gains dollar for dollar up to the amount of your realized loss and carry forward up to $3,000 of additional loss(if any remaining) for future years. You

may also bee able to defer a year-end bonus, or delay the collection of business debts, rents, and payments for services. Similarly, you may be able to accelerate deductions into 2009 by paying some deductible expenses such as medical expenses, interest, and state and local taxes before year end.

Inventory Your Assets

When writing an estate plan, you need to inventory and assign a value to all of your assets. Separating your assets into categories will make this process easier. You will need to make categories for your residence, savings, investments, life insurance, etc. Separating things into categories will help you organize all of the documentation that you will need to give your lawyer.

Professional Team of Advisors

You should not try and write your estate plan without the help of professionals. Most people do not have the expertise to write an effective estate plan. Your team should include experts in estate planning such as insurance underwriters, accountants, trust officers, and an attorney. I know, you can do it online for a few bucks.  Just make sure it is legal and addresses the "not-so-typical" concerns that make your situation a little different than others.......i.e. family businesses, step-children......you know!

Insurance underwriters can review your coverage, and help you organize everything your accountant and attorney will need to help you with your plan. They can also help you avoid cash flow problems upon your death. Many underwriters can also advise you on ways to avoid unnecessary death taxes.

Accountants, like insurance underwriters, can advise you about death taxes. They can also help calculate the tax consequences of various transfers. If you own a business or other property, accountants can advise you on how to manage these properties, and whether or not you should continue the business or sell it.

Trust officers can help you choose executors or advise in setting up a trust fund. These professionals can also offer management and investment services. Trust officers can review your financial situation and help you achieve your financial goals.

The most important person on your team of professionals is your attorney. Your attorney will evaluate the advice given by the others on your team. You will make all final decisions about your estate plan with your attorney's confidential assistance. Your attorney will be able to produce all documents that are needed for an effective and legal plan.

Review Plan

Periodically, you will need to review your estate plan. Your life is constantly changing and these changes can affect your estate plan. Some examples of these changes are marriage or divorce, birth of children or grandchildren, death, financial changes, and changes in certain tax laws. Your attorney will help you review your plan and make any necessary revisions to your estate plan.

Talking about death can be difficult, but in order for a smooth transition of your assets to take place upon your death, an estate plan must be written. Having an estate plan in place before you die, will give you peace of mind, and will provide protection, whether emotionally or financially, for your family.

I will start you off on your journey by telling you what I plan for my legacy, as I refine my life's vision and purpose. I am working tirelessly to create a legacy focused on uplifting the human condition and spirit by demonstrating the importance of starting today what is not promised tomorrow.  I don't have any sponsors, but Nike's "Do it" campaign strikes a chord as I share wealth strategies with my clients.  I approve of this message.  Do you?

Now, it's your turn. Start thinking today about what your legacy should or will be. Finally, while it is correct to think with the end in mind when it comes to pursuing your goals, I challenge you to keep your legacy in mind as well.

I'd like to hear your feednack.  Let me know what you think.